How to Buy a Corporate Bond for Income - Easily

Corporate bonds

Corporate bonds are good sources of fixed income. If your goal is to have a certain level of income every month, corporate bonds may be a good addition to your portfolio. How do I buy corporate bonds?

Things You'll Need

• money
• internet
• online broker account

Instructions

1. 

   **Use a Broker**

   Buy Corporate Bonds for income by investing with a traditional broker or with a discount online broker. Traditional broker charge higher commissions and fees. You can use a discount broker and pay substantially less commissions. A company such as Scottrade, is an online discount broker (see Resources below this article) where you can buy corporate bonds. Also, TD Ameritrade opearates a discount broker business.

2. 

   **Buy a Mutual Fund**

   Buy Corporate Bonds for income by investing in Corporate Bonds Mutual Funds. Many of the major mutual funds company have corporate bond funds for investment. Investing this way should reduce your financial risk and give you a reasonable interest income.

   Funds companies such as, Vanguard have well established corporate bond funds you can invest in for income. These mutual funds companies also offer online broker accounts.

3. 

   **Directly from the company**

   Buy Corporate Bonds for income directly from the corporation you are interested. For example, if you want to buy Exxon Mobile corporate bonds call up the Investors Relations department and request information on buying their corporate bonds. Corporations usually have more than one type of bonds outstanding with different interest rates and maturities dates. You will have to make the selections.

4. 

   ****Corporate Bond Rating***

   Before buying corporate bonds review the bond's rating by one of the Rating Agencies. Visit Standard and Poor.com or look in the financial newspaper. You may want to invest only in good rated bonds.

Resources

• Scottrade online
• Prudential securities online